The Turkish government is calling on its citizens to convert their dollar-denominated assets to the lira, in a new effort to save the country’s swiftly plummeting currency.
According to Bloomberg, which cited a video broadcast on Turkey’s national television, the country’s government applauded its citizens for their hard work, whilst urging them to entrust their dollar savings into Turkish lira time deposits that protect the currency from depreciation. The advertising campaign in part of President Recep Tayyip Erdogan’s latest attempt at a lira rescue plan aimed at preventing Turkey’s local currency from depreciating even further.
The lira plummeted to record-lows against the US dollar in the last few months of 2021, as the country’s government embarked on an unorthodox interest rate-lowering plan in an attempt to reduce inflation. So far, Erdogan’s efforts have done little to tame price pressures, prompting the president to impose a new set of measures in December to halt what appeared to be an imminent collapse of Turkey’s currency.
So far, the lira has remained relatively stable since the beginning of the new year, with the country’s central bank making the currency’s stability its top policy priority.
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.